[Independent] UK growth is being “undermined by Government policy”, the head of British Airways’ parent company said today.

Walsh "it's a terrible shame that Government policy in the UK is damaging our ability to connect with these Asian markets."

Airlines were facilitating growth but the Government had to understand that it was hampering growth, said Willie Walsh, chief executive of International Airline Group (IAG).

Speaking at Heathrow airport today, Mr Walsh said Prime Minister David Cameron had been promoting UK trade in Asia of late.

Mr Walsh went on: “While the Prime Minister talks about the fantastic opportunities for Britain, it’s a terrible shame that Government policy in the UK is damaging our ability to connect with these Asian markets.”

Mr Walsh went on: “UK growth is being undermined by Government policy and that’s a terrible thing to have to say.

Mr Walsh is keen to see the Air Passenger Duty (APD) airport departure tax scrapped as well as Heathrow being expanded so that Britain can connect with vital Asian markets.

However, the Government has ruled out a third runway at Heathrow.

He said today: “It’s a nonsense to say that British business can be competitive if we can’t fly to these (Asian) destinations.”

Mr Walsh went on: “This is a Government of contradictions. They talk about the importance of competitiveness yet we have APD.”

Asked about the ability of Heathrow to cope with the Olympic Games traffic this summer, Mr Walsh said the problem of immigration queues was not just about Heathrow but about “inadequate resources”.

He said Heathrow was a “fantastic airport” but efforts to improve things there were being “undermined” by this lack of resources.